'Location based services can become $2-5 bn sector in 3 yrs'

Location-based services sector has potential to achieve $2-5 billion size in the next two to three years provided some issues related to application, devices, IP rights and privacy are addressed, industry body COAI said.

"As of today location-based services (LBS) is less than half a billion industry but it has potential to grow anywhere between $2-5 billion in the next 2 to 3 years ... Can add a good 10-20% of revenue to telecom industry over the period," COAI Director General Rajan S Mathews said on sidelines of a Ficci event here.

He, however, added issues related to application, devices, IP rights and privacy need to be addressed to achieve this kind of turnover for the sector.

LBS integrates the location or position a mobile device with other information to provide added value to a user. It has the ability to locate the geographical location of a user or an object and to deliver information as per users' requirements.

The service can provide information regarding public transportation, route options, weather forecasts, location of hospitals, restaurants, police stations, tourist attractions, landmarks, petrol pumps, ATMs among others.

Asked about the uptake of LBS, Mathews said mobile operators right now are not structured to sell LBS as there is shortage of specialised people who know logistics which is hampering growth of the services.

In May 2011, the DoT had amended mobile licences making it mandatory for setting up location-based services.

In his address, AS Ganeshan, Programme Director, Satellite Navigation Programme and Mission Director, GAGAN, ISAC- ISRO highlighted the utility of project GAGAN and Indian Regional Navigation Satellite System (IRNSS) in LBS for safe and efficient  development of infrastructure.

"GAGAN will evolve into an indigenous navigation service to provide enhanced and more precise navigation. To provide this service, IRNSS will be in place by 2015. The first satellite of this system will be launched by the end of this month," he said.

Stressing on the importance of developing applications for real time data, Additional Surveyor General of India Major General RC Padhi said the Central Government was anchoring pilot projects for Virtual Reference Stations in Orissa, Gujarat, Andhra Pradesh and Karnataka.